Motorola Mobility

A picture of a phone listed as the Moto E recently made a brief appearance on Motorola Mexico’s Facebook page, only to be pulled by its publisher. This quick sneak peek gave us a look at what we might see during the company’s media event on May 13th, however the Moto E’s hardware was still pretty much a mystery.

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A few weeks back rumors surfaced suggesting that Motorola Mobility was working on a device called the Moto X+1. Soon after this claim, additional details about the unannounced handset’s customization options emerged, with rumors of it offering a new leather back plate as an optional design. While we’re still not completely sure what the Moto X+1 might be, recently the mysterious device was spotted in Motorola’s MotoMaker by German mobile blog MobiFlip.

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History has taught us that manufacturers typically don’t discuss hardware sales and shipments publicly, but some firms will occasionally issue press releases sharing statistics when boasting about success. However, the folks at Motorola Mobility have taken a much more casual approach to outlining its figures. Today, the soon to be Lenovo-owned company tweeted that it shipped 6.5 million devices globally during Q1 of 2014.

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Last night, it was reported that Motorola CEO Dennis Woodside would be stepping down from his position to become the chief operating officer at cloud storage company Dropbox. Woodside has now confirmed this decision in a blog post on the Official Motorola Blog, saying that he will step down as CEO at the end of March.

Woodside goes on to announce that Jonathan Rosenberg, who was the SVP of Products at Google from 2002 until 2011, will step in as COO at Motorola Mobility on April 1st. Rosenberg worked closely with Woodside and was “intimately involved” with decisions at Motorola. Google Chief Business Officer Nikesh Arora will remain Executive Chairman of the Motorola Operating Board and continue to oversee strategy at the company. It looks as if Motorola will be going without a CEO after Woodside leaves, leaving Lenovo with a lot of control.

Woodside says he is leaving Motorola Mobility “in great hands” and that he is immensely proud of what the company has accomplished in the past 18 months. He also notes that he is excited for the next chapter for the company under Lenovo, who purchased it for $3 billion last month.

Dropbox CEO Drew Houston has also issued a statement on the news.

“We’ve long admired Dennis’s leadership at Google and Motorola where he ran multi-billion dollar businesses and built amazing organizations around the world. We’re so happy to welcome Dennis to our team — I can’t imagine a better person to help us bring Dropbox to global scale.”

Read the full resignation letter after the jump:

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Google CEO Larry Page and Lenovo CEO Yang Yuanqing

Update: Motorola and Google have both confirmed the acquisition of Motorola by Lenovo for $2.91 billion. Google will, however, retain the “vast majority” of Motorola’s patents. Google CEO Larry Page says that Motorola will be better unitized and more beneficial to Lenovo. This will also give Google more time to drive “innovation across the Android ecosystem.” The deal still has to pass regulatory approval in China and the U.S., and until then, Google says it is business as usual for the two companies.

According a tweet from Reuters reporter Gerry Shih, Lenovo is nearing completion on a deal to purchase Motorola from Google for around $3 billion. A report from China Daily news corroborates Reuters, but claims the deal is closer to the $2 billion mark. China Daily claims that the deal will be announced to the public Thursday morning in Beijing, which is just a few hours from now. Google is also holding an earnings call tomorrow, so it’s very possible that the information will officially drop during the call.

TechCrunch has “confirmed reports” of the acquisition, saying the terms of the deal have not yet been revealed, but that it was around $3 billion. It’s also important to note that the deal includes Motorola Mobility, which Google paid $12.5 billion for, not the entire Motorola company.

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It’s no secret that Google thinks big when it comes to crazy, innovative technologies, and that appears to be just what the company is doing with its latest patent filing (via The Register). Google’s Motorola Mobility division, a year ago, filed for a patent relating to a temporary neck tattoo that can serve as a lie detector and includes a built-in microphone. It’s an incredibly out-there concept. Essentially, Motorola says you will be able to apply the tattoo with a sticky substance to your neck and wirelessly connect it to a mobile device.

The patent application suggests a couple of potential use cases. For one, Google points out that it could be used by security personnel that work undercover or in noisy environments. The application reads:

Mobile communication devices are often operated in noisy environments. For example, large stadiums, busy streets, restaurants, and emergency situations can be extremely loud and include varying frequencies of acoustic noise. Communication can reasonably be improved and even enhanced with a method and system for reducing the acoustic noise in such environments and contexts.

Google also suggests that it could be used in conjunction with a lie detector to tell when a user is speaking falsely, based on skin response.

Optionally, the electronic skin tattoo 200 can further include a galvanic skin response detector to detect skin resistance of a user. It is contemplated that a user that may be nervous or engaging in speaking falsehoods may exhibit different galvanic skin response than a more confident, truth telling individual.

Obviously this Google neck tattoo is still in the early stages of development, but it does raise some interesting questions as to what else Google is secretly working on. 
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Update: Google did it

After-hours trading saw Google’s stock price jump 8 percent to $959.65 as investors responded to its 23 percent revenue gain in its Q3 results. This potentially puts the stock in sight of the exclusive $1000 per share club, reports the Telegraph … 
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The WSJ is reporting (via Techmeme) that Google is planning to allow Motorola to spend up to half a billion dollars to promote its forthcoming flagship smartphone, the Moto X. This would mean Motorola would spend more on promoting one handset than either Samsung or Apple spent in total last year across all their mobile devices.

Google is expected to allow its Motorola hardware unit to spend several hundred million dollars—and possibly upward of $500 million—to market the highly-anticipated device in the U.S. and some overseas markets, including in Europe, said people familiar with the matter.

All four major U.S. wireless carriers—AT&T Inc., Verizon Wireless, Sprint Nextel Corp., and T-Mobile—are expected to make the device available to their customers this fall, in part because of Motorola’s marketing plans … 
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Since it was purchased by Google, Motorola has been undergoing a major shift as a company. We’ve seen very few devices released over the last year, and up until the D11 conference, everyone inside the company had been very quiet. As part of the overhaul, however, Motorola looks to have a new logo. The new logo made its first appearance on the site of Techweek, an event Motorola is co-sponsoring this week. Now, this does make us wonder if the logo is here to stay or if it just for the conference, but we’re inclined to say that it’s here for good. Companies don’t change their logos all that often, as they are not something taken lightly.

The new logo is much simpler than Motorola’s old look, which was a bolded, italicized “MOTOROLA.” Now, everything is in lowercase font with a much softer color. The classic red “M” is now the same color as everything else and is surrounded by a wheel of colors. The most notable change, however, is what is underneath. To show off its new bosses, Motorola is now advertising that it is “a Google company.” 
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We heard in October that Google had plans to further reduce Motorola’s workforce after cutting around 20 percent, or roughly 4,000 jobs, in August. The Wall Street Journal reported today on an email from Google that confirmed the company is beginning to cut around 1,200 employees (a little over 10 percent of its current total headcount):

Motorola MSI -0.74% staffers were informed by the company via email this week that “while we’re very optimistic about the new products in our pipeline, we still face challenges.” The company email added that “our costs are too high, we’re operating in markets where we’re not competitive and we’re losing money.”

As for where the cuts might take place, we previously reported that Motorola, which was unprofitable for 14 of its last 16 quarters, planned to reduce its operations in Asia and India, but today’s report said the layoffs would hit workers in the United States, China, and India. Google also warned that further restructuring might be necessary and significant costs could be involved.

In a recent piece from The Wall Street Journal highlighting Google executives’ fear that Samsung is gaining too much dominance, Android chief Andy Rubin said the purchase of Motorola was “a kind of insurance policy against a manufacturer such as Samsung gaining too much power over Android.”

While Google might be happy with the mobile ad revenue Samsung brings in shipping roughly 40 percent of the devices running Android, The Wall Street Journal said Google execs worry behind closed doors that Samsung could use its dominance to renegotiate its cut of revenue from mobile ads and search:

Google executives worry that Samsung has become so big—the South Korean company sells about 40% of the gadgets that use Google’s Android software—that it could flex its muscle to renegotiate their arrangement and eat into Google’s lucrative mobile-ad business, people familiar with the matter said.

Citing its usual “people familiar with the matter,” WSJ claimed executives at Google are betting on companies like HTC and HP to release compelling Android devices that compete with Samsung. According to the report, Android chief Andy Rubin discussed the situation at a recent event for Google executives. He described Motorola as “a kind of insurance policy against a manufacturer such as Samsung gaining too much power over Android.”
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It is no secret that Mountain View-based Google has been in a flurry of legal proceedings over its Android operating system—along with the OEMs that use it. Consequently, Google has been vocal in the past about how it wants to change the patent system in the United States. Adding to the attempt of reform, in an interview with reporters in Seoul this afternoon, Google Legal Chief David Drummond called for a reform of how software patents are issued.

According to the Wall Street Journal, Drummond talked about making it more difficult to obtain a software patent as one possible solution. He spoke about other countries, specifically: “There are places in the world where you can’t get a software patent, or at least it’s harder, like Europe. We think that’s probably the better way to go.” Many others have also voiced a similar opinion.

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Motorola Mobility apparently yanked all tablets and most smartphones from its German store.

According to the company’s online German store (translated), just three devices are available for purchase: the Motorola Razr I, the Motorola Razr HD, the Motorola Gleam+. Meanwhile, there are absolutely no Motorola tablets for sale through the website  (translated).

Tech news website ZDNet first noticed the lacking selection of Android-powered devices from Google-owned Motorola, and it blamed the insufficient stock on “aggressive and successful litigation” against the company in recent months:

The mobile hardware maker has suffered a series of defeats in German courts after the firm was accused of patent infringement by software giant Microsoft. However, Motorola recently batted one victory to the back of the cage proving that Microsoft’s litigious advances were not fool-proof.

A German regional court ruled earlier this week that a patent belonging to the Redmond, WA.-based company was not infringed by Motorola. In spite of Motorola’s recent victory against Microsoft’s claims, the previous injunctions remain in place.

Apple also had a hand to play in the ongoing playbook against Motorola after the phone maker infringed a European patents belonging to Apple, a software feature described as a ‘rubber-banding’ patent.

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According to the Mannheim Regional Court in Germany, Motorola Mobility does not infringe on a Microsoft patent enabling a “method and radio interface layer comprising a set of application programming interfaces (APIs).” The patent, which Reuters described as allowing “applications to work on different handsets,” is considered a rare victory for Google’s Motorola. Throughout its countersuits, Microsoft has been able to win three patent cases against Motorola in Germany. As noted by Microsoft-funded blogger Florian Mueller, “Microsoft should actually thank Motorola for this initiative, which at this stage has been far more productive for Microsoft than for Google.”

Microsoft is expected to appeal the decision, as usual, but the Judge Voss did not go over the reasoning behind the ruling during the announcement. Microsoft’s associate general counsel David Howard provided a statement to Reuters:

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A new report from The Wall Street Journal today, citing an SEC filing, noted Google has put an exact value on the patents acquired in its purchase of Motorola Mobility. In the filing, Google claimed “patents and developed technology” acquired in the deal were valued at $5.5 billion—less than half of the $12.4 billion Google paid for the company.

Google also broke down the rest of the purchase price in the SEC filing:

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As noted in a report from Ars Technica, the ITC’s import ban on Motorola Android devices is set to kick in tomorrow. It covers 18 Motorola products infringing patents related to Microsoft’s Exchange Active Sync technology. Motorola, of course, has the option to pay Microsoft to license the patent, as it has in the past, but the company told Ars in a statement that it plans to continue selling its flagship devices in the U.S. following tomorrow’s ban:

“In view of the ITC exclusion order which becomes effective Wednesday with respect to the single ActiveSync patent upheld in Microsoft’s ITC-744 proceeding, Motorola has taken proactive measures to ensure that our industry leading smartphones remain available to consumers in the US,” Motorola said. “We respect the value of intellectual property and expect other companies to do the same.”

The following Motorola devices are covered by the ITC ruling: the Motorola Atrix, Backflip, Bravo, Charm, Cliq, Cliq 2, Cliq XT, Defy, Devour, Droid 2, Droid 2 Global, Droid Pro, Droid X, Droid X2, Flipout, Flipside, Spice, and Xoom.

Ars also received a statement from Microsoft’s Deputy General Counsel David Howard:

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Motorola announced its Dinara smartphone— officially known as the “xT928” – for China Telecom last November, but a supposed press leak of the AT&T variation just surfaced stateside.

The Verge received a media shot of the rumored device today (above). As the report noted, the assumed Atrix 2 successor boasts a 720p display, Android 4.0 Ice Cream Sandwich, and 4G LTE. The notable feature, however, is not really a feature at all: the Dinara lacks physical home buttons on the front display. Much is unknown about the smartphone this point; even its name is not set in stone. However, the “July 26” stamp within the date widget might finally give a hint as to when this device will launch.

Google closed its $12.5 billion Motorola Mobility acquisition last Month when China gave the merger an overdue go-ahead. Motorola promptly filed an 8-K form with the U.S. Securities and Exchange Commission, and the deal’s transaction finalized shortly after. It appears the Dinara’s software and user-interface is unaffected by the recent Google buyout and will likely sport a Motoblur flavor.

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